Nordblom Associates, Inc. v. Commissioner
United States Tax Court
Petitioner paid $ 25,000 for an option to purchase certain corporate stock with the expectation that another corporation, not obligated so to do, would take over and exercise the option and not only reimburse petitioner for the purchase price of the option but also pay it a commission on purchase of the optioned stock. The option was not so taken over and was not exercised.
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Petitioner paid $ 25,000 for an option to purchase certain corporate stock with the expectation that another corporation, not obligated so to do, would take over and exercise the option and not only reimburse petitioner for the purchase price of the option but also pay it a commission on purchase of the optioned stock. The option was not so taken over and was not exercised. The purchase price of $ 25,000 was forfeited in petitioner's tax year ended October 31, 1944, thus entailing a loss to petitioner in such amount in that tax year. Petitioner had no capital gains in such tax year. Held,…
1Opinion of the Court
Nordblom Associates, Inc., Petitioner, v. Commissioner of Internal Revenue, Respondent
Nordblom Associates, Inc. v. Commissioner
Docket No. 20425
United States Tax Court
15 T.C. 220; 1950 U.S. Tax Ct. LEXIS 98;
September 8, 1950, Promulgated
Decision will be entered for respondent.
Petitioner paid $ 25,000 for an option to purchase certain corporate stock with the expectation that another corporation, not obligated so to do, would take over and exercise the option and not only reimburse petitioner for the purchase price of the option but also pay it a commission on purchase of the optioned stock.…
2Cases cited2 opinions
- Spring v. CommissionerUnited States Tax Court · 1944
- Nordblom Associates, Inc. v. CommissionerUnited States Tax Court · 1950